1.Implement ERP system that allows for proper bidding, adequate estimate shipping costs, and a secure payment method that inspires trust.

2.Establish CRM system to protect Sotheby's reputation. The brand should be taken care of accordingly to Sotheby's standards of service and quality. Prevent customer confusion and protect brand name. Operate a toll free number to adequately service customers. Promote a feeling of intimacy at the click of the mouse through the use of "space planner", "personal stylist" and "gift selector".

3.Use separate strategies for the different business units making "in-store-auction services" available online. Provide customers with incentives to do business online. Establish profit centers for the different e-businesses.

4.List auctions and set prices adequately.

2. Rationales

2.1. Technically suitable website

ERP implementation has top priority in preventing loss of brand reputation.

To ensure high quality of customer service and transaction clarity it is necessary to integrate departments and functions across Sothebys.com

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and Sothebys. Amazon.com onto a single computer system that can serve the different departments' particular needs. External consultants and freelance web developers may be used for specific parts of the project but the project team will conduct the majority of the work. This will ensure that the site can be extended and maintained by Sotheby's own staff, and the copyright for the new technologies will rest with Sotheby's.

Adequate estimation of shipping costs important to prevent "surprise factor".

Once a product or a lot has been registered for sale online, dimensions and weight will be considered prior to the bidding process in order to provide customers with an accurate estimate of its shipping cost "anywhere in the USA". Customers in other countries will have the option to click on the "S&H" icon, feed it with the dimensions and weight of the object,

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8 pages13351Jun/20034.0

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